When people start thinking about creating a lifetime income, especially those of you with a 401(k) plan, for example, you really start to appreciate when someone else promises to pay you their benefits. We like annuities because they serve their purpose: They’ll pay you, guaranteed down to the penny, a series of monthly payments no matter how long you live. Here at Annuity Genius, whether you’re looking for fixed annuities or immediate annuities, we can help you pick what works for your life.
Unfortunately there are a ton of myths and misconceptions when it comes to annuities. Today we’re here to clear the air and give you the truth.
- Annuities are too confusing. Many are often left a little confused and surprised when we explain that an annuity works exactly like a company pension or Social Security benefits. Not only do annuities provide you with the same type of lifetime benefits as Social Security and company pensions, but they offer the most flexibility and often provide greater monetary benefits.
- The insurance companies always keep the remaining money once you die. With the exception of immediate annuities, this is simply not true. Fixed indexed annuities pass along any and all remaining money in your account, probate free, to your named beneficiaries. Further, your accounts can be set up as “joint life” and provide both you and your spouse guaranteed lifetime payments no matter how long each of you live.
- All annuities have high and hidden ongoing fees. All the different type of annuities we discussed above have no fees at anytime. The only annuities that have fees are variable annuities, this is because they are an equity product, not an insurance product, and you must pay ongoing fees for managing the equities within the account.